The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign group of skilled nursing, rehabilitative care services and assisted living companies, reported record results earlier this month for the first quarter of fiscal year 2009. The company reported total revenue of $130.3 million, a 14% increase from the same period in 2008 and an increase in net income by 25% year over year. The company reaffirmed its 2009 annual guidance, projecting revenues of $543 million to $548 million, and net income of $1.58 per share to $1.63 per share for the year that assumes, among other things, no additional acquisitions or dispositions beyond those made to date, and a continued stable reimbursement environment.
During the quarter, the company announced that:
- On January 1, 2009, Ensign acquired Cabrillo Care Center, a 156-bed skilled nursing facility in San Luis Obispo, California which had an occupancy rate of 58% at acquisition. An Ensign operating subsidiary assumed the property’s existing long-term lease from a long-time operator who was retiring.
- Also on January 1, 2009, Ensign acquired Southland Healthcare Center, a 150-bed skilled nursing facility in Lufkin, Texas. The strategic acquisition, which had an occupancy rate of only 56% at acquisition, enhanced Ensign’s growing critical mass in the East Texas area. The physical plant is in good condition and includes 18 highly-desirable private suites.
- On February 1, 2009, Ensign expanded into Colorado, acquiring four long-term care facilities in the Denver metropolitan area. The facilities included Littleton Manor, a 35-bed skilled nursing facility in Littleton, Arvada Nursing Center, a 50-bed skilled nursing facility in Arvada, Julia
- Temple Center, a 125-bed skilled nursing facility in Englewood, and Chateau des Mons, a 38-bed assisted living facility in Englewood. Ensign purchased the facilities, which had a combined occupancy rate of approximately 86% at acquisition, from a not-for-profit corporation that had owned and operated them since 1990.
- On March 27, 2009, Ensign completed the acquisition of Plymouth Tower, a 116-bed continuing care retirement community in Riverside, California. An Ensign operating subsidiary is managing the facility, which had an occupancy rate of 20% at acquisition. The 42-year old facility is slated to undergo extensive renovations in 2009-10, but will remain in partial operation throughout the construction process.
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